After years of blockbuster price inflation that pushed Dior and Chanel’s prices far ahead of other luxury retailers (+51% and +59% price hikes for the two French houses, as opposed to only +36% industry averages), analysts say that the generic formula for luxury growth is coming to a noticeable shift. This year, luxury sales momentum is expected to be driven by volume, not further price increases. That pivot, undoubtedly driven by larger macro-economic circumstances, helps to explain why Chanel and Dior are quietly recalibrating their entry level offerings: while prices for core handbags remain firmly intact, both luxury brands appear to be increasing their proportion of offerings under €4,000 (handbags, small leather goods and fashion jewellery) by more than 15 percent each. Chanel’s Spring/Summer 2026 pre-collection highlights sub-€5,000 handbags, adding styles such as the Small Flap, while Dior’s Spring/Summer 2026 collection follows a similar playbook, with items priced under €1,000 — including wristlets, card holders and toiletry bags — up 27 percent compared to the same season in 2023. These lower-priced items — from bag charms and brooches to ballet flats, scarves and sneakers — are designed to slip just beneath key consumer psychological thresholds, pulling aspirational shoppers into smaller purchases that feel like more manageable investments.